In a medium saucepan, whisk together the sugar and cocoa powder.
Add milk, chocolate chips, and vanilla and whisk together.
Place over medium heat and bring it to a light boil while stirring constantly. Be sure the chocolate is fully melted and incorporated.
Set aside to cool to your desired temperature and serve with your favorite toppings.
*For a richer and creamier hot chocolate, replace 1 cup of milk with 1 cup of heavy cream or half and half. Enjoy!